In today’s fast-moving world of commercial real estate, keeping up with proper lease accounting practices alone can be overwhelming (especially if you’re dealing with multiple portfolios). Add in lease administration tasks and it takes the intensity to another level.
Fortunately, there are CRE software options today that lighten the load. Let’s discuss why it makes sense to choose a software solution with both accounting and administrative capabilities.
Lease Accounting vs. Lease Administration
First off, what’s the difference between these two terms? Both technically fall under the umbrella of “lease management,” but vary slightly in their meaning and what they involve:
- Lease accounting is the recording of lease activities and their financial impact. This involves a significant amount of data capture, organization and utilization to help a company stay compliant and transparent.
- Lease administration involves managing the lease agreement process, specifically creating new leases and completing all administrative tasks involved with them throughout their lifecycle.
There are software options that focus on the lease accounting side of lease management only, then there is software that mainly helps with administrative tasks. But both have their benefits, which are ideal when combined (as they are with Quarem).
Benefits of Lease Accounting Software
The biggest benefit of lease accounting software is accuracy. By standardizing the way you capture, organize and report on data, you can ensure better accuracy over time (due to the reduction of human error and other factors). But that’s not the only benefit of lease accounting software; here are a few others:
- Enjoy access to secure, cloud-based, easy-to-find information.
- Easily manage and organize lease accounting assets.
- Scale your data processes for multiple locations and bigger portfolios.
- Set critical date tax-related notifications and better prepare for them.
Benefits of Lease Administration Software
The biggest benefit of lease administrative software is efficiency. By automating many of the time-consuming administrative tasks that take up your day, you’re free to focus on other areas of lease management, like contract negotiations and prospecting. Here are some of the other benefits of lease administration software:
- Store and easily access all info related to the lease, including contacts.
- Easily reference document variations for current and future negotiations.
- Manage and track all lease agreements individually or in a master list.
- Share and access all activity related to your lease documents.
Quarem combines lease accounting and lease administration into one valuable lease management platform. If you’d like to see Quarem in action for yourself, request a demo today!